•Evolving business model innovation process, addressing challenges since 2014.•Process model ensuring alignment with customer needs and organizational objectives.•Incorporating new process phases: ...lifecycle analysis, competitor analysis, roadmap.•23 activities and 38 tools support business model innovation for incumbents.
Business model innovation (BMI) is challenging for incumbents because they must leverage existing capabilities, market knowledge, and stakeholder relationships in the BMI process. As BMI is an ongoing process, incumbents that can continuously innovate their BMs in response to changing market conditions and customer needs may be successful in the long term. However, an integrated and detailed process model of incumbents’ highly challenging BMI process is lacking. By structurally reviewing 47publications and integrating their process model elements, we propose an incremental, iterative, recursive, and reflective conceptual process model for incumbents’ BMI that comprises six phases and summarizes 23activities and 38tools. Our work contributes to the ongoing evolution of the process perspective of BMI by presenting a process model for incumbents that complements the established phases of initiation, ideation, and integration with the new phases of lifecycle analysis, competitor analysis, and roadmap.
The growing literature on Sustainable Business Model Innovation has received much attention, not of academicians only but practitioners also. The concept and the theoretical rationalisation of its ...components still need more elaboration. So far, more should be known about its philosophy of existence, which obstructs its development towards its literature. This study attempts to bridge this gap by revealing the derived philosophy of Sustainable Business Model Innovation. It assesses the inclusion of Business Model components in Sustainable Business Model Innovation by identifying related 61 research papers and qualitatively anatomise them. The study attempts to connect the analogy of Sustainable Business Model Innovation with Business Model Innovation and Sustainable Business Model. The results identified analogies between Business Model, Business Model Innovation, Sustainable Business Model, and Sustainable Business Model Innovation, and configures Sustainable Business Model Innovation based on sustainable value innovation. The research gap and questions have been identified. Based on the analysis, the research has proposed Sustainable Business Model Innovation components comprised of Sustainable Value Proposition Innovation, Sustainable Value Creation and Delivery Innovation, and Sustainable Value Capture Innovation. This study contributes to the Sustainable Business Model Innovation theoretical literature and would help the practitioner and researcher to develop concise and comprehensive sub-components and metrics for Sustainable Business Model Innovation.
•Business Model Innovation is a future to deal with sustainability challenges.•Understanding of the underlying philosophy of SBMI is relatively still unexplored.•SBMI analogy has been identified in the present study.•Philosophy of SBMI through value, innovation, and sustainability are identified.•The study provides research gaps and proposes a question for further research.
Due to rapid digital advancements, established firms are actively pursuing business model innovation to seize emerging opportunities. By effectively managing digital technologies and related ...resources, digital capabilities play a crucial role in enabling such innovation. Through an exploratory case study of two established Chinese firms, we propose a process model that reveals a hierarchical structure of digital capabilities and two distinct approaches for utilizing these capabilities to enable exploitative and exploratory business model innovation, respectively. This study contributes to the emerging business model innovation literature by showcasing how digital capabilities are developed and utilized to facilitate business model innovation.
Over the last 15 years, business model innovation (BMI) has gained an increasing amount of attention in management research and among practitioners. The emerging BMI literature addresses an important ...phenomenon but lacks theoretical underpinning, and empirical inquiry is not cumulative. Thus, a concerted research effort seems warranted. Accordingly, we take stock of the extant literature on BMI. We identify and analyze 150 peer-reviewed scholarly articles on BMI published between 2000 and 2015. We provide the first comprehensive systematic review of the BMI literature, include a critical assessment of these research efforts, and offer suggestions for future research. We argue that the literature faces problems with respect to construct clarity and has gaps with respect to the identification of antecedent conditions, contingencies, and outcomes. We identify important avenues for future research and show how the complexity theory, innovation, and other streams of literature can help overcome many of the gaps in the BMI literature.
Digital startups in the early stages of their development frequently undergo innovation to their value architecture and Business Model. A set of pragmatic methods drawing on lean and agile principles ...has recently been proposed to support digital entrepreneurs facing Business Model Innovation (BMI), known as Lean Startup Approaches (LSAs). However, the theoretical and practical relationship between BMI and LSAs in dynamic digital environments has seldom been investigated. To fill this gap, our study draws on an exploratory multiple-case study based on three digital multisided platform startups to craft a unified framework that can disclose the relationship between BMI, LSAs and Agile Development (AD), within the context of Strategic Agility. Our findings, which emerge from the unified framework, show that LSAs can be employed as agile methods to enable Business Model Innovation in Digital Entrepreneurship. These findings are then organized around a set of propositions, with the aim of developing a research agenda directed towards integrating BMI, LSAs and AD processes and methods.
Big Data Analytics Capabilities (BDAC) represent critical tools for business competitiveness in highly dynamic markets. In this connection, by leveraging on the Dynamic Capabilities View (DCV) this ...study analyses the relationship between BDAC and Business Model Innovation (BMI). It argues that the impact of BDAC (a lower-order dynamic capability) on BMI is mediated by Entrepreneurial Orientation (EO; a higher-order dynamic capability). The proposed model is assessed by PLS-SEM (symmetric) and fuzzy-set Qualitative Comparative Analysis (asymmetric) methods using survey data from 253 UK firms. Our findings demonstrate that BDAC have both direct and indirect positive effects on BMI, with the latter being mediated by EO. These results enrich the innovation management literature on Big Data (BD) by showing that BDAC influence company strategic logics and objectives, rather than depending on them, thus playing a significant role in creating value for companies and their stakeholders.
Designing a business model is not a one-off process; adjustments are often required. To create such adjustments and realize business model innovation, firms require the deployment of dynamic ...capabilities. Yet, we know little about the role of dynamic capabilities in fostering business model innovation, particularly in SMEs. This research, designed as an in-depth longitudinal case study, investigates how an SME’s market orientation and its deployment of dynamic capabilities are related to business model innovation. By developing a process framework of an SME’s business model innovation from start-up to scale-up, this paper contributes to the literatures on business model (innovation), small business, and dynamic capabilities. It clarifies how an SME’s market orientation, through the fitting deployment of its dynamic capabilities, drives its business model innovation. More specifically, this study characterizes market-driving, market-driven, and ambidextrous business models in the SME context, and reveals the exact dynamic capability processes necessary for transforming a business model from market-driving to market-driven, and ultimately to a model reflecting an ambidextrous market orientation. These insights outline how SMEs can deploy dynamic capabilities that align with the SME’s market orientation to innovate the design and architecture of their business models.
•Business model innovation is an important factor in responding to a crisis.•Financial support can be an inhibitor to innovation.•Crises in general can be enhancers for BMI in hospitality.•Stammgasts ...are important psychological and financial support during a crisis.•Stammgasts provide the foundational environment to engage in BMI during a crisis.
The hospitality industry worldwide is among the hardest-hit industries from the COVID-19 lockdowns. Initial theoretical and practical observations in the hospitality industry indicate that business model innovation (BMI) might be a solution to recover from and successfully cope with the COVID-19 crisis. Interestingly, some firms in the hospitality industry already started to successfully adapt their business models. This study explores the why and how of these successful recovery attempts through BMI by conducting a multiple case study of six hospitality firms in Austria. We rely on interview data from managers together with one of their main stammgasts for each case, which we triangulate with secondary data for the analysis. Findings show that BMI is applied during and after the crisis to create new revenue streams and secure a higher level of liquidity, with an important role of stammgasts.
PurposeIn a move characterized by ambiguity, Facebook changed its name to Meta in October 2021, announcing a new era of social interaction, enabled by the metaverse technology that appears poised to ...become the future center of gravity for online social interactions. At first glance, the communicated change signals a radically new business model (BM) based on an unprecedented configuration of the three following components: value creation, value proposition and value capture. The purpose of this paper is to analyze Facebook’s announced changes in its BM to clarify whether the change is as radical as communicated or rather represents an incremental transformation of the current BM.Design/methodology/approachThis investigation adopted an in-depth case study research method. The process included using a structured approach to collect 153 data points, including academic studies and publicly available information, followed by qualitative content analysis.FindingsThe results of our analysis of Facebook’s entrepreneurial journey indicate that the communicated strategic refocusing does not correspond to a radical BM innovation pattern. Even though Facebook’s BM might evolve into the innovation phase, as the current changes appear very futuristic, the authors estimate that the core elements of the BM will change incrementally. The investigation indicates that the underlying logic of the straightforward communicative efforts primarily serves two purposes: to improve the external perception of the company and to disseminate an internal change signal within the organization.Originality/valueThis paper is the first study that takes an entrepreneurship and BM perspective in analyzing Facebook’s approach in rebranding to Meta and refocusing its strategy on building the metaverse. The academic and practical relevance, as well as the potential future impact on business and society, makes the investigation of this case an intriguing prospect. Additionally, the study illuminates the difference between the communicated vision and the real impact on the business, suggesting critical questions about future large-scale rebranding efforts and their effects.
•A multiple case study of four companies from diverse industries is conducted.•Digital technology–enabled improvements for the circular economy are synthesized.•A model of digital technologies as ...catalysts for the circular economy is developed.•Data integration and analysis are crucial for value creation from closing loops.
Digital technologies have been increasingly argued to enable circular economy business models. However, the extant research is based on conceptual and review studies, leading to a lack of understanding of how digital technologies enable individual firms in real-life settings to improve their resource flows and value creation and capture and thereby enable business model innovation to emerge. In this study, we conducted a multiple case study with interviews and document data from four Northern Europe-based forerunner firms with circular economy business models enabled by digital technologies, providing two key contributions to the extant literature. First, we generate an empirical evidence -based synthesis of improvements of resource flows and value creation and capture in firms’ businesses across industries, highlighting the critical role of knowledge generation. Second, we develop a model of four key types of business model innovation for circular economy catalyzed by digital technologies, varying on incremental and radical improvement to both the resource flows and value creation and capture, providing theoretical insights to both business model innovation and digital technologies in circular economy. For managers, we suggest suitable digital technologies for the key types, highlighting the importance of radical business model innovation catalyzed by data integration and analysis technologies.
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